ABC Manufacturing Co. reported the following production costs for the 12 months January through December.

Month

Total production costs

Units produced

January

$450,000

350

February

290,000

220

March

490,000

330

April

525,000

390

May

550,000

410

June

325,000

240

July

450,000

290

August

450,000

320

September

525,000

380

October

240,000

150

November

710,000

450

December

500,000

350

Perform the following:

Perform a regression analysis using Excel.

Using the results from the regression analysis, use the cost equation in the form

Y = f + vX.

Assume that ABC Manufacturing Co. will produce 450 units next month. Calculate total production costs for the month using the regression analysis method.

Using the data in Table 1, use the high-low method to calculate total production costs. Assume that ABC Manufacturing will produce 400 units.

Using the data in Table 1, use the scatterplot method to calculate total production costs. Assume that ABC Manufacturing will produce 500 units.

Perform the following steps for each transaction:

1.Prepare a journal entry to record the transaction.

2.Summarize the flow of costs through T-accounts. Use the format presented in Figure 4.2, "Flow of Product Costs in a Process Costing System" (no need to include T-accounts for raw materials inventory, wages payable, or manufacturing overhead). Assume that there are no beginning balances in the work-in-process inventory, finished goods inventory, and cost of goods sold accounts.

Gonzalez Tortilla Corporation produces tortillas in large batches and uses a process costing system. Three departmentsMixing, Rolling, and Packagingare involved in the production process. Gonzalez Tortilla has the following transactions:

1. Direct materials totaling $25,000$7,500 for the Mixing department, $6,250 for the Rolling department, and $11,250 for the Packaging departmentare requisitioned and placed in production.
2. Each production department incurs the following direct labor costs (wages payable):

Mixing

$3,125

Rolling

$5,750

Packaging

$2,750

1. Manufacturing overhead costs are applied to each department as follows:

Mixing

$12,500

Rolling

$8,750

Packaging

$9,375

1. Products with a cost of $6,875 are transferred from the Mixing department to the Rolling department.
2. Products with a cost of $8,000 are transferred from the Rolling department to the Packaging department.
3. Products with a cost of $11,375 are completed and transferred from the Packaging department to the finished goods warehouse.
4. Products with a cost of $10,375 are sold to customers.

Perform the following:

Perform a regression analysis using Excel.

Using the results from the regression analysis, use the cost equation in the form

Y = f + vX.

Assume that ABC Manufacturing Co. will produce 450 units next month. Calculate total production costs for the month using the regression analysis method.

Using the data in Table 1, use the high-low method to calculate total production costs. Assume that ABC Manufacturing will produce 400 units.

Using the data in Table 1, use the scatterplot method to calculate total production costs. Assume that ABC Manufacturing will produce 500 units.

Perform the following steps for each transaction:

1.Prepare a journal entry to record the transaction.

2.Summarize the flow of costs through T-accounts. Use the format presented in Figure 4.2, "Flow of Product Costs in a Process Costing System" (no need to include T-accounts for raw materials inventory, wages payable, or manufacturing overhead). Assume that there are no beginning balances in the work-in-process inventory, finished goods inventory, and cost of goods sold accounts.